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The Optimal Number of Workers for a Perfectly Competitive Firm

Question 4

Multiple Choice

The optimal number of workers for a perfectly competitive firm to hire occurs when


A) total labour cost equals total revenue.
B) the lowest possible wage is accepted by workers.
C) the wage rate equals the marginal product of the last worker.
D) the wage rate equals the value of marginal product of the last worker.
E) the largest output is achieved.

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